WallStSmart

Illinois Tool Works Inc (ITW)vsSmith & Wesson Brands Inc (SWBI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 3200% more annual revenue ($16.04B vs $486.22M). ITW leads profitability with a 19.1% profit margin vs 2.2%. SWBI appears more attractively valued with a PEG of 0.84. SWBI earns a higher WallStSmart Score of 60/100 (C).

ITW

Buy

58

out of 100

Grade: C

Growth: 4.7Profit: 9.5Value: 4.3Quality: 5.8
Piotroski: 3/9Altman Z: 4.71

SWBI

Buy

60

out of 100

Grade: C

Growth: 6.7Profit: 4.0Value: 6.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ITW.

SWBIUndervalued (+20.4%)

Margin of Safety

+20.4%

Fair Value

$14.81

Current Price

$15.54

$0.73 discount

UndervaluedFair: $14.81Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ITW4 strengths · Avg: 9.3/10
Return on EquityProfitability
93.7%10/10

Every $100 of equity generates 94 in profit

Altman Z-ScoreHealth
4.7110/10

Safe zone — low bankruptcy risk

Market CapQuality
$74.36B9/10

Large-cap with strong market position

Operating MarginProfitability
26.8%8/10

Strong operational efficiency at 26.8%

SWBI4 strengths · Avg: 8.5/10
EPS GrowthGrowth
67.6%10/10

Earnings expanding 67.6% YoY

PEG RatioValuation
0.848/10

Growing faster than its price suggests

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
17.1%8/10

17.1% revenue growth

Areas to Watch

ITW4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.1%4/10

4.1% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.692/10

Expensive relative to growth rate

Price/BookValuation
23.1x2/10

Trading at 23.1x book value

SWBI4 concerns · Avg: 3.0/10
Market CapQuality
$678.09M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
3.0%3/10

ROE of 3.0% — below average capital efficiency

Profit MarginProfitability
2.2%3/10

2.2% margin — thin

Operating MarginProfitability
4.8%3/10

Operating margin of 4.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : ITW

The strongest argument for ITW centers on Return on Equity, Altman Z-Score, Market Cap. Profitability is solid with margins at 19.1% and operating margin at 26.8%.

Bull Case : SWBI

The strongest argument for SWBI centers on EPS Growth, PEG Ratio, Price/Book. Revenue growth of 17.1% demonstrates continued momentum. PEG of 0.84 suggests the stock is reasonably priced for its growth.

Bear Case : ITW

The primary concerns for ITW are Revenue Growth, Piotroski F-Score, PEG Ratio.

Bear Case : SWBI

The primary concerns for SWBI are Market Cap, Return on Equity, Profit Margin. A P/E of 63.5x leaves little room for execution misses. Thin 2.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

ITW profiles as a value stock while SWBI is a growth play — different risk/reward profiles.

ITW carries more volatility with a beta of 1.15 — expect wider price swings.

SWBI is growing revenue faster at 17.1% — sustainability is the question.

ITW generates stronger free cash flow (858M), providing more financial flexibility.

Bottom Line

SWBI scores higher overall (60/100 vs 58/100) and 17.1% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Illinois Tool Works Inc

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Illinois Tool Works Inc. or ITW is an American company that produces engineered fasteners and components, equipment and consumable systems, and specialty products.

Smith & Wesson Brands Inc

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Smith & Wesson Brands, Inc. designs, manufactures and sells firearms worldwide. The company is headquartered in Springfield, Massachusetts.

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